Insure throughout, rather than discrete items, says broker

SHIPPERS should consider insuring throughput rather than discrete items at various stages of a voyage to cut risk and save on insurance premiums, according Lancashire insurance broker, Bolton-based aba Group.

"Insurance known as stock throughput can provide wider cover at lower cost than a combination of property and marine policies," said aba Group managing director Graham Webster.

"Traditionally, businesses importing from overseas use a combination of policies: one covering the transit and the other the storage aspect of the business," he said.

"Some also rely on policies of sea freight, road hauliers or other intermediaries, which is very dangerous as their cover will be based on their trading conditions which limit liability," he said in a statement posted on Benzinga.com trading portal.

"A stock throughput policy is cradle-to-the-grave, covers importers from the dispatch of the goods from overseas, transportation, storage and distribution," he said.

Mr Webster said such a policy benefits manufacturers, distributors, retailer, importers/exporters, logistics service providers, warehouse/storage companies, and companies involved in sea, air and road transportation.
(Source:www.schednet.com)